Over the past seven weeks, we have explored the foundational concepts and principles of microeconomics, and we have applied them to the world around us. Take this time to share what you have learned with your classmates. In your initial post, respond to the following:
- Choose one microeconomics concept applied in your final project. Explain your findings and the implications to your chosen firm’s sustainability.
- Using the same microeconomics concept chosen above, explain how it would be applied to the firm where you work or the type of firm you hope to work for in the future. What does this imply about this firm’s future?
In your response posts to peers, comment on the conclusions your peers drew. Add any of your own observations about the firm and how the selected microeconomics concept applies. Additionally, discuss how the concepts your peers chose would be applied to your current or future work.
POST: 1
“This term we have covered several key concepts and principles of microeconomics and then applied them to a chosen firm, for me that was Apple. One concept that was interesting to me was market structure and how production and prices will develop in these markets. There are 4 types of market structures: perfect competition, monopolistic competition, monopoly and oligopoly. Apple falls under the monopolistic competition category. This is assessed through their four-firm concentration and HHI index. What this tells us is that Apple is part of a small number of firms that leads the cellphone market. These firms have little power to limit or raise prices to increase profits so they differentiate themselves from their competitors through heavy marketing and advertising. Apple has the ability to influence the market if they are able to continue to produce innovative products that will set them apart from competitors.
The hospital that I work for is in Boston, MA, where there are many hospitals but we specialize in eye, ear, nose and throat services so that sets us apart from our competitors. We just merged with Partners Healthcare Systems which made us an even stronger organization. It has put us in a better place financially and are able to get referrals from other partnering hospitals.”
POST 2:
“Hello Classmates,
Hard to believe this course is already almost over. In my final paper one microeconomics concept I applied was to describe the barriers to entry into a market. In my case the Under Armour company that I chose had a lot of barriers to entry, the largest being the consumer. Basically, a new brand name in the athletic clothing industry does get trust and bought as often for a competitive price if the consumer doesn’t know and trust the brand. Over time, the Under Armour brand has became trusted and well sought out by athletes. This elimination of such a large barrier means that company will continue to thrive and expand as long as its consumer base continues to grow.
Am currently enlisted in the Air Force as active duty, applying this concept does not really work. However, if I were to go to a large accounting firm in the future, I would research and verify that said firm does not have any large barriers to overcome before I join them. Without any of those barriers the firm would be able to expand and grow into a larger more successful company.”
